Intel shares plunged 22% in after-hours trading in New York after the chipmaker forecast fourth-quarter revenue and profit below expectations, blaming a memory chip squeeze that has hurt PC sales. CFO David Zinsner warned the PC slowdown would extend into the first half of next year, and current-quarter sales could come in $1bn to $2bn short of Wall Street's estimate of $17bn. Gross margins are projected to fall to 37%, while CEO Lip-Bu Tan said memory prices had risen sharply. The company had recently raised $20bn through a share sale after its stock gained more than 140% this year, and it is also dealing with an explosion at an Israeli facility that killed two workers. Demand for AI computing remained strong despite headwinds in consumer hardware.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Intel shares plunge 22pc after PC slowdown
Read the original on Yahoo Finance ↗
Keywords
IntelsemiconductorsearningsNVDA
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/29/2026 | 213.72 |
| Change that session | -0.77% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/29/2026 | 715.33 |
| Change that session | -1.42% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- NVDA Stock Drops: Nvidia May Back Data Center Loan Its Own Customer, Analyst Sees Little Impact From Intel’s Weak Report
Nvidia shares fell 2% in overnight trading amid a broad selloff in AI infrastructure stocks, following mixed reports from Intel and Amazon. Bloomberg reported that Nvidia is in talks to provide credit support for an Nscale data center in West Virginia that Anthropic plans to use, while Nscale is pursuing an IPO with a $30 billion target that some investors have pushed back on. Intel plunged 23% after forecasting December-quarter sales and profit below expectations, while AMD fell 6.4% and Micron 3.4%. Deepwater Asset Management's Gene Munster said Intel's weak outlook should not be extrapolated to Nvidia, as the main issue is PC demand, and noted that Meta and Alphabet expect significantly higher capex. Nvidia stock is up 15% year to date.
- Intel rebounds as semiconductor stocks recover from sell-off
Intel rose about 5% to around $94 on Monday as semiconductor stocks recovered from a steep sell-off the previous week, when Intel had fallen more than 14% according to Barron's amid doubts over the sustainability of AI spending. The iShares Semiconductor ETF gained about 4% in premarket trading after nearly 12% losses the previous week, while AMD, Nvidia and Micron rose between 2% and 4%. JPMorgan upgraded Intel to neutral from underweight, citing agentic AI and shortages of high-end chips as potential drivers of stronger earnings. The rally may offer some relief, but doubts remain over whether tech companies can generate enough returns from their AI investments to justify elevated valuations.
- Intel leads chip stocks higher as investors jump back into AI trade
Chip stocks rebounded on Monday as investors bought the dip after last week's steep AI trade sell-off. The PHLX Semiconductor Index (^SOX) rose 2%, reversing a recent semiconductor rout. Intel (INTC) jumped 5% after JPMorgan upgraded the stock to Buy, citing "solid execution." Nvidia (NVDA) and AMD (AMD) also gained, while a Goldman Sachs upgrade of CoreWeave (CRWV) to Buy from Neutral helped lift AI sentiment. Arm Holdings (ARM), Micron Technology (MU) and SK Hynix (SKHY) also rebounded after sharp declines last week.
- INTC, AMD, MU, SNDK: US Chip Stocks Rebound After Worst Week Since March
U.S. chip stocks rebounded over the weekend after their worst week since March, as investors repositioned ahead of third-quarter earnings from Tesla, Netflix and Meta. Intel and AMD each rose about 2.6% in overnight trading, while Micron and SanDisk gained 1.8% and 2.6%, and the iShares Semiconductor ETF (SOXX) rose 2.4% after an 11.8% drop the previous week. In a Nikkei interview, Intel CEO Lip-Bu Tan said the company was “80% done” with its restructuring and pointed to AI chip packaging and ASICs as growth areas. Intel also unveiled its GPU D-series with up to 480GB of memory, which according to TechRadar surpasses the 288GB of Nvidia's Blackwell Ultra B300 for data center GPU memory capacity. Stocktwits sentiment was bullish on SOXX, bearish on INTC, neutral on AMD and bullish on MU and SNDK, while one trader warned of possible further downside before a bounce and advised caution with long positions until last week's high is broken.
- Intel and AMD Drop 3% as Rotation Out of AI Chip Stocks Continues; NVIDIA Holds Steady
Intel fell 3% to $92.60 and AMD fell 3% to $544.74 in morning trading as investors continued rotating out of AI chip stocks over doubts about how AI infrastructure spending will be financed. The iShares Semiconductor ETF fell 2% and the Invesco QQQ Trust 0.9%, while NVIDIA rose 0.4% to $218.10. The article says Intel's revenue is recovering, with its CEO calling growth its strongest in many years and gross margin improving sharply, but its foundry unit still posts a large operating loss from heavy manufacturing spending. AMD, by contrast, outsources production and relies mainly on its data center business for most of its revenue. The author suggests shareholders, especially of Intel, consider keeping position sizes modest until the foundry question is resolved.
- Intel, Broadcom CEOs warn capital crunch could become AI's biggest bottleneck
Broadcom CEO Hock Tan said capital could be an even bigger constraint on AI expansion than shortages of semiconductors, memory or electricity, while Intel CEO Lip-Bu Tan flagged rising cost of capital and the need for companies to show returns. Speaking at the DBS Asia Future Forward Conference in Singapore, Hock Tan said demand for compute infrastructure still exceeds supply and the imbalance could last through 2029, possibly into 2030. He expects wafer shortages could ease by 2028 or 2029, with power availability improving as new infrastructure comes online. Both executives remain bullish on near-term demand, but Hock Tan warned demand could slow if advanced AI models disappoint or capability gains plateau. Lip-Bu Tan stressed that companies will increasingly need to show tangible returns from AI investment through efficiency gains and new business models.
Related markets
Latest news
- Amazon's AI build-out just pushed its cash burn to a record: Chart of the Day
Amazon's free cash flow was negative by more than $42 billion over the 12 months through September, a record cash burn nearly double the previous high of about $23 billion in 2022. Most of the damage came in the third quarter, when Amazon spent about $77 billion on property and equipment, more than double a year earlier, leaving a gap of roughly $33 billion for the quarter. The spending is paying off at AWS, which grew 39% to about $46 billion, its fastest pace in nearly five years, while Amazon's operating margin of nearly 14% was its highest ever. Long-term debt rose to about $173 billion from $66 billion at the end of 2025, and cash fell to about $56 billion from $87 billion. Credit default swap costs on Amazon's debt have risen about 50% since early August, and the stock fell about 4% on Thursday.
- YouTube isn't just dominating TV — it's dominating Google
Ads on living room TVs accounted for more than one-third of YouTube's ad revenue, Alphabet reported earlier this week. YouTube ad revenue rose 9% to $11.2 billion, and the company says it remains the No. 1 streaming platform in the US by watch time. Meanwhile, Meta's Instagram is testing a new “Features” format that allows uploads of videos up to 90 minutes, a major shift from its long-resisted stance on long-form video and a direct challenge to YouTube. The move aims to help creators connect with audiences and to capture the ad dollars that come with longer content. Last year, Instagram also pushed to let users watch Reels on their TVs.
- Google is happy AI is cannibalizing its most profitable business
Executives said on Wednesday's earnings call that strong growth in Google's AI Mode helped slow revenue growth, because the company earns less ad money on AI than on traditional search. Alphabet's stock plunged 12% on Thursday, shedding nearly $500 billion. Pichai said AI investments helped drive the fastest search query growth in five years, and chief business officer Philipp Schindler said most AI Mode queries are incremental, creating more monetization opportunities over time. Pichai also described AI agents as an expansion opportunity rather than a threat to search revenue. Google views the lost revenue as part of its AI investment, betting on a future where AI reshapes how people use the web.
- THORChain’s RUNE jumps 13% after Binance’s record $6.3B hack
RUNE rose more than 13% to $0.67 from a local low of $0.59 at 12:20 a.m. UTC, according to TradingView data, after Binance confirmed the $6.3 billion hack. Onchain investigator ZachXBT said funds stolen from Binance and Bitget's September hack passed through THORChain and were combined at the same Ethereum address, and that the Bitget attack was attributed to North Korea-linked TraderTraitor. TRM Labs and Chainalysis also linked the Binance hack to the group. North Korean hackers had previously used THORChain to launder funds from the $1.4 billion Bybit hack and the $388 million Bitget hack. THORChain rejected Bitget CEO Gracy Chen's call to block the attacker's addresses, saying it cannot block individual swaps, though node operators can pause trading across a blockchain or the network. Validator TCB threatened to leave unless the protocol stopped processing North Korea-linked funds.
- Billionaire Pham Nhat Vuong adds nearly half a billion USD to VinFast Vietnam
Billionaire Pham Nhat Vuong has completed an additional capital injection of VND 11,000 billion (about USD 436.4 million) into VinFast Vietnam Joint Stock Company (VFVN), a subsidiary of VinFast Auto Ltd., according to a VinFast Auto report filed with the SEC on October 29. The funds were provided through VFVN issuing non-convertible dividend-preference shares to him, on terms similar to the shares issued in the third quarter of 2026, when he contributed VND 20,000 billion. Including both tranches, his total contributions through this method reach VND 31,000 billion, in addition to his earlier financial support commitments. The company said the aim is to further strengthen VFVN's financial capacity and provide resources for its growth plans. Pham Nhat Vuong, Vietnam's richest person with assets of USD 37.7 billion, said at Vingroup's 2024 shareholder meeting that Vingroup would never abandon VinFast.
- Here’s when Binance plans to reopen after what’s believed to be the largest-ever $6.3 billion hack
Binance has pledged to restore exchange operations within a couple of days after a record $6.3 billion heist, believed to be the largest ever. The hack has rattled the industry and investors.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.